Question #$5(5$ marks$)$

Classify each of the following items as either: a$)$

Estimated liability

b$)$ Contingent liability

c$)$ Ordinary current liability

Union dues payable

Operating lease

Vacation benefits

Warranty on $$85,749$ worth of canoes

Unearned revenues

Debt guarantees

Income taxes payable

Wages payable

Property taxes payable

$10$ Accounts payable

Question #$6(7$ marks$)$

Needing some short$-$term financing, Champion Company borrowed $$85,000$ on November $20,2023,$ by issuing

a note payable for $90$ days at $10\%.$ The company has a calendar year$-$end, and does not make reversing

entries.

REQUIRED: Record the journal entries for the following:

$1$ The issuance of the note on November $20,2023$

$2$ The adjusting entry on December $31,2023$

$3$ The payment of the note on